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A Presentation on
‘Asset Product’
1
Presented By: Mr. Harish Deore
Asset Products
 An asset is what the bank holds in terms of the credit given
to the customer
 Interest rate charged are different for different products
 Fixed interest followed for some products while a floating
interest charged for others
 The interest rate varies with the changes in the inter-bank
rates like Benchmark Prime Lending Rates
 If there is an increase in the BPLR then the customer has to
pay a higher EMI and vice-versa
 In fixed interest rates, the customer is protected against
fluctuations in the interest rate
2
Types of Asset classes
3
Housing loans
4
 These form majority of the asset portfolio for a retail bank
 Given in order to extend financial support to the people
who want to construct a house
 The amount extended depends on the expenditure
involved and the repaying capacity of the customer
 The repayment period is long term in nature
Personal Loans
5
 Is given to customers to help them meet personal expenses like
marriage, travel etc.
 Depends on the customer’s ability to repay and his credibility
 Personal loans given to salaries employees and self employed
people
 Financial institution grant personal loan to its customer on the
basis of few documents like KYC, Financial Document, Bank stat
etc.
 It is an unsecured loan but in recent time few financial
institutions are taking partly collateral like LIC, FD, property,
land etc depending on the customer’s requirement and
customer’s financial strength
Property Loans/Mortgage Loans
 One of the most common type of loan extended by the
banks
 Under this, property assets like land, buildings, vehicles
and gold etc are mortgaged
 Interest rates fixed on the prevailing bank rates
6
Agriculture Loans
 Typical products include crop loans, farm equipment loans
against warehouse receipts
 Provide loans for horticulture activities, poultry, dairy,
rearing of goat and sheep, sericulture etc
 Depends on mortgaging or hypothecation in most loans
 Loan cards have been brought by many banks which can be
ATM’s or credit cards
7
Vehicle loans
 Provide loans for purchase for two wheelers, four wheelers
and commercial vehicles
 Usually financed up to 85-90% of the total invoice amount
 Repayment is made through equated monthly installments
(EMI)
8
Credit cards/Debit cards
 In credit cards, the amount is paid to the merchant
electronically
 The money is paid by the card user to the bank through
EMI’s or in a lump sum amount
 In Debit cards, the amount is deducted from card holder’s
account and paid to the merchant
 No interest is paid by the Debit card holder
 Credit cards are very aggressively marketed by bank
merchants
9
Investment Products
 A fairly new category as compared to asset and liability
products
 Includes pension and mutual funds, insurance products etc
 Provides additional liquidity to the bank to invest in other
avenues
 These products are also used as tools to retain the
customers
 These are mainly cross-sold
10
Snapshot of Asset Product
11
THANK YOU
12
A Presentation on
‘Liability Product’
13
Presented By: Mr. Harish Deore
Liability Products
 Commercial banks offer a variety of "liability products" to
consumers. These products are known as "liability
products“ because they represent liabilities of the bank
 Consumers generally know them as "deposit" products.
 Typically, liability products include checking andsavings
accounts, money market accounts and certificates of
deposit (CDs)
 Bank liability products are useful to consumers since they
provide a safe place to keep their funds and givet hem the
opportunity to earn interest on cash that they may not
immediately need.
14
Importance of Liability Products
3
Difference Between Asset & Liability
4
Sector wise Liability Products
5
Liability Products
 Liability products also give consumers access to cash via
checks and ATMs, and except for most checking accounts,
they allow consumers to earn interest on their deposits
 There are three major Liability banking Porduct
 Saving Account
 Current Account
 Term Deposit
6
Savings account
 Savings account has been designed to help people save
for their future financial requirements. Under this account,
bank gives free ATM cum debit card.
 The account can also be accessed through SBI internet
banking facility by downloading instant sbi. The rate of
interest is compounded half yearly under this account.
 On the other hand, savings plus account gives the facility
of savings account along with term deposit account. Any
surplus funds in the account exceeding the threshold limit,
for a minimum amount of Rs.10,000 and in multiple
of Rs.1000 in any one instance, are transferred as term
deposit and earns interest as applicable to term deposits.
19
Current Account
 Non interest-bearing bank account which allows the
accountholder to write checks against the funds in the
account
 Individuals, public and private limited companies,
partnership firms, and trusts
 Overdraft facility is a short-term credit instrument to
secure the liquidity you need for your operational business
@1.5% p.a
8
Term deposit
 Earn higher income on surplus funds
 Bank offers flexibility in period from 15 days to 10 years
 can be opened with a nominal amount of Rs. 1000/
 Against your fixed deposit you can take loan/overdraft
during your urgent financialrequirement.
 Interest rate- 15 days to 45 days ± 4.00
9
List of Liability Products offered by
HDFC Bank
 Saving Account
 Regular Savings Accountb.
 Savings Plus Accountc.
 Savings Max Accountd.
 Senior Citizens Account.
 No Frills Account.
 Institutional Savings Accountg.
 Salary Account
10
List of Liability Products offered by
HDFC Bank
 Salary Account
 Payroll
 Classic
 Regular
 Premium
 Defence
 No Frills Salary Account
 Reimbursement Current Account
11
Contd..
 Kid's Advantage Account
 Pension Saving Bank Account j.
 Family Savings Groupk.
 Kisan No Frills Savings.
 Kisan Club Savings
 Current Account
 Plus Current Account
 Trade Current Account
 Premium Current Account
 Regular Current Account
12
Contd..
 RFC - Domestic Account
 Flexi Current Account
 Apex Current Account
 Max Current Account
 Merchant Advantage Current Account
 Merchant Advantage Plus Current Account
13
Fixed Deposit Account
 Regular Fixed Deposit
 5 Year Tax Saving Fixed Deposit
 Super Saver Facility
 Sweep-in Facility
 Recurring Deposit Account
14
THANK YOU
15

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Asset product & liability Harish Deore

  • 1. A Presentation on ‘Asset Product’ 1 Presented By: Mr. Harish Deore
  • 2. Asset Products  An asset is what the bank holds in terms of the credit given to the customer  Interest rate charged are different for different products  Fixed interest followed for some products while a floating interest charged for others  The interest rate varies with the changes in the inter-bank rates like Benchmark Prime Lending Rates  If there is an increase in the BPLR then the customer has to pay a higher EMI and vice-versa  In fixed interest rates, the customer is protected against fluctuations in the interest rate 2
  • 3. Types of Asset classes 3
  • 4. Housing loans 4  These form majority of the asset portfolio for a retail bank  Given in order to extend financial support to the people who want to construct a house  The amount extended depends on the expenditure involved and the repaying capacity of the customer  The repayment period is long term in nature
  • 5. Personal Loans 5  Is given to customers to help them meet personal expenses like marriage, travel etc.  Depends on the customer’s ability to repay and his credibility  Personal loans given to salaries employees and self employed people  Financial institution grant personal loan to its customer on the basis of few documents like KYC, Financial Document, Bank stat etc.  It is an unsecured loan but in recent time few financial institutions are taking partly collateral like LIC, FD, property, land etc depending on the customer’s requirement and customer’s financial strength
  • 6. Property Loans/Mortgage Loans  One of the most common type of loan extended by the banks  Under this, property assets like land, buildings, vehicles and gold etc are mortgaged  Interest rates fixed on the prevailing bank rates 6
  • 7. Agriculture Loans  Typical products include crop loans, farm equipment loans against warehouse receipts  Provide loans for horticulture activities, poultry, dairy, rearing of goat and sheep, sericulture etc  Depends on mortgaging or hypothecation in most loans  Loan cards have been brought by many banks which can be ATM’s or credit cards 7
  • 8. Vehicle loans  Provide loans for purchase for two wheelers, four wheelers and commercial vehicles  Usually financed up to 85-90% of the total invoice amount  Repayment is made through equated monthly installments (EMI) 8
  • 9. Credit cards/Debit cards  In credit cards, the amount is paid to the merchant electronically  The money is paid by the card user to the bank through EMI’s or in a lump sum amount  In Debit cards, the amount is deducted from card holder’s account and paid to the merchant  No interest is paid by the Debit card holder  Credit cards are very aggressively marketed by bank merchants 9
  • 10. Investment Products  A fairly new category as compared to asset and liability products  Includes pension and mutual funds, insurance products etc  Provides additional liquidity to the bank to invest in other avenues  These products are also used as tools to retain the customers  These are mainly cross-sold 10
  • 11. Snapshot of Asset Product 11
  • 13. A Presentation on ‘Liability Product’ 13 Presented By: Mr. Harish Deore
  • 14. Liability Products  Commercial banks offer a variety of "liability products" to consumers. These products are known as "liability products“ because they represent liabilities of the bank  Consumers generally know them as "deposit" products.  Typically, liability products include checking andsavings accounts, money market accounts and certificates of deposit (CDs)  Bank liability products are useful to consumers since they provide a safe place to keep their funds and givet hem the opportunity to earn interest on cash that they may not immediately need. 14
  • 16. Difference Between Asset & Liability 4
  • 17. Sector wise Liability Products 5
  • 18. Liability Products  Liability products also give consumers access to cash via checks and ATMs, and except for most checking accounts, they allow consumers to earn interest on their deposits  There are three major Liability banking Porduct  Saving Account  Current Account  Term Deposit 6
  • 19. Savings account  Savings account has been designed to help people save for their future financial requirements. Under this account, bank gives free ATM cum debit card.  The account can also be accessed through SBI internet banking facility by downloading instant sbi. The rate of interest is compounded half yearly under this account.  On the other hand, savings plus account gives the facility of savings account along with term deposit account. Any surplus funds in the account exceeding the threshold limit, for a minimum amount of Rs.10,000 and in multiple of Rs.1000 in any one instance, are transferred as term deposit and earns interest as applicable to term deposits. 19
  • 20. Current Account  Non interest-bearing bank account which allows the accountholder to write checks against the funds in the account  Individuals, public and private limited companies, partnership firms, and trusts  Overdraft facility is a short-term credit instrument to secure the liquidity you need for your operational business @1.5% p.a 8
  • 21. Term deposit  Earn higher income on surplus funds  Bank offers flexibility in period from 15 days to 10 years  can be opened with a nominal amount of Rs. 1000/  Against your fixed deposit you can take loan/overdraft during your urgent financialrequirement.  Interest rate- 15 days to 45 days ± 4.00 9
  • 22. List of Liability Products offered by HDFC Bank  Saving Account  Regular Savings Accountb.  Savings Plus Accountc.  Savings Max Accountd.  Senior Citizens Account.  No Frills Account.  Institutional Savings Accountg.  Salary Account 10
  • 23. List of Liability Products offered by HDFC Bank  Salary Account  Payroll  Classic  Regular  Premium  Defence  No Frills Salary Account  Reimbursement Current Account 11
  • 24. Contd..  Kid's Advantage Account  Pension Saving Bank Account j.  Family Savings Groupk.  Kisan No Frills Savings.  Kisan Club Savings  Current Account  Plus Current Account  Trade Current Account  Premium Current Account  Regular Current Account 12
  • 25. Contd..  RFC - Domestic Account  Flexi Current Account  Apex Current Account  Max Current Account  Merchant Advantage Current Account  Merchant Advantage Plus Current Account 13
  • 26. Fixed Deposit Account  Regular Fixed Deposit  5 Year Tax Saving Fixed Deposit  Super Saver Facility  Sweep-in Facility  Recurring Deposit Account 14